RESIDUAL values expert CAP has called on Renault to end its practice of selling its electric cars at prices that exclude the value of the battery pack, which is instead provided under a separate battery lease arrangement.

CAP has long voiced reservations about Renault’s financial separation of car and battery, saying it makes it impossible to forecast residual values for the company’s electric vehicles, which in turn makes it difficult to calculate leasing rates.

CAP says Renault needs to reverse its policy in order to “give electric cars a real chance” in the company car market.

CAP’s criticism has been given renewed impetus by the news that in a ruling that applies from 2015, HMRC has decided to add the value of the battery pack to the P11D value of Renault’s electric cars – according to CAP, that’s £7392 including VAT in the case of the recently introduced Zoe hatchback.

And that’s on top of the fact that P11D values of electric cars are already a lot higher than their selling prices because they don’t reflect the government’s £5000 Plug-In Car Grant.

CAP Manufacturer Relationship Manager, Martin Ward, said: “HMRC’s decision to base the BIK on the total is only fair, otherwise Ford, for example, could deflate the P11D value of a Mondeo by excluding the engine.

“Our frustration with Renault’s approach is based on the fact that we believe the Zoe is a very good car that isn’t getting a chance in the all-important company car market.

“We have every confidence in the quality and reliability of the Renault Zoe. We have seen it, driven it, lived with it and its 90 mile range means it definitely has a place in fleets for shorter range driving purposes.

“But until Renault removes the unnecessary layer of complexity caused by treating the battery as a separate entity to the car CAP will be unable to forecast its used values so fleets can work out competitive business car leasing rates.”

As yet there’s no official response from Renault in the UK.